You are a marketing executive of a fast food company and have been asked by your supervisor to evaluate the positioning of two of your major competitors, Wendy’s and McDonald’s. Wendy’s has focused primarily on the adult market while McDonald’s has fashioned an all-out pursuit of the kids market (as evidenced by the numerous advertising tie-ins and toy giveaways).
- Think about demographic and socioculture trends and changes and explain how each organization’s interpretation of these trends and changes has affected its choice of strategy?
- Is their strategy affected by the amount of advertizing they do on telivision and the internet?
- Which organization do you think is currently positioned better and why?
- what strategy will you recommend for your company based on recent trends and changes ?
- How can these strategies improve their image as a ” corporate citizen” within the community?
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McDonalds – Value Chain Analysis – Questions for Chapter 3
TASK
The essay mentions various primary and support activities that are part of the McDonald’s value chain.
- Please use the value chain model to match each of the specific activities that are mentioned in the paper to the value chain categories (i.e. information systems, production, etc.).
- Identify how each of the specific activities adds net value to the total value chain.
- Identify what, if any, important value creating activities by McDonald’s may have been left out of the essay-writer’s analysis.
Description of value-chain activity Please categorize activity and explain contribution
In the late 1940s, Dick and Mac McDonalds were searching for a way to improve their little drive-in restaurant in San Bernardino, California, U.S.A.; they invented an entirely new concept based upon speed service, low prices, and big volumes.
For a company which feeds some 38 millions clients every day, finding reliable quality supplies is a major factor for success. McDonald’s has solved the problem by making food supplies part of their success. McDonald’s distributors are strategically located to be accessible to the each restaurant and carry practically everything, from meat and potatoes to light bulbs. Coca-Cola, the right well-known drink, has been with McDonald’s from the beginning supplying beverages. McDonald’s is increasingly using its leverage to capitalize upon global purchasing practices. New restaurants throughout Europe feature tabletops from Belgium; chairs, floors and tiles from Italy; doors from Austria etc., all using low-cost, quality suppliers.
McDonald’s ‘new ‘Made for you’ preparation food system will allow it to serve hotter, fresher food. When a burger is being created the bottom bun and the meat is heated up together in the microwave, than the cheese, ketchup, mustard and pickles are being put on and covered up with the other half of the bun. The whole finished burger is then …
